Enclosure No. 3 in Shanghai Despatch to Peking No. 430 of 30th October 1935.
Minute by Crown Advocate.
H.M.Consul-General, Shanghai.
Re:
Proposed amendment of Article 194 of the China Order in Council, 1925.
Ence ®.
143
I return herewith the draft despatch to the
Ambassador forwarded with your Minube to me of the 24th July
last which I have kept in hand until I had a suitable oppor-
tunity of discussing it wito the Judge which I have now had
in the course of our recent journey to Amoy where we have been
engaged on two criminal trials.
As I have informed you verbally, I consider the
best way of ensuring that British extraterritorial rights
and legislation are not utilized for the ends of non-British
interests is to give some executive authority power to prevent
such interests from carrying on business in China under the
guise of a British incorporated Company.
It would seem immaterial whether this executive
authority is vested in the hands of the Ambassador or some
other person though I consider it might well be vested in the
Registrar of Companies if the authority were coupled with an
exemption from any penalty for any possible wrongful exercise
thereof which might otherwise be incurred.
In my view an important part of your despatch is the
page on which you set out the conditions by which the executive
authority is to be guided in exercising its discretion. In
the main I agree with the suggestions made by you, but there
are certain refinements which have occurred to me and which
might be of use. I am accordingly attaching a copy of this
page in which I have incorporated these refinements.
(SIGNED) VICTOR PRIEST OLD.
Shanghai, 23rd October, 1935.
Crow Advocate,